The cash-only deal is the latest in a series of buy-outs made by Newcastle-based Sage, the only British software firm listed on the FTSE 100.

Tekton provides specialist construction software, implementation and support services to more than 230 companies in the UK and Ireland.

It saw revenue for the six months to December 2007 of £4.5m.

Sage CEO Paul Walker said: "The acquisition of Tekton strengthens Sage's leading market position in this sector and completes our range of construction solutions, from small companies through to larger customers in the mid-market."

Over the past year Sage, which recently admitted that the US arm of its business could do better, has been on a sizeable spending spree with the acquisition of a number of companies including French outfit XRT and Swiss firm Pro-Concept SA. ®